EPC Contractor & EPCM Contractor Key Differences - No.4: Procurement

 

EPC Contractor & EPCM Contractor Key Differences - No.4: Procurement

 

An EPC contractor generally takes responsibility for the procurement of the necessary plant and materials. However, an EPC contractor may purchase equipment as agent of the owner where, for example, the procurement relates to costly and specialised items of equipment, (eg a SAG Mill for a resources processing plant).


This role of an EPC contractor is compared to an EPCM contractor, who will generally procure contracts with suppliers and contractors as agent of the owner, and not in EPCM contractor name. That is, the contractual relationship is between the supplier/contractor and the owner, not the EPCM contractor.

 

Source: Ashurst